USD/JPY Daily Analysis
The USD/JPY pair is currently in a downtrend following a fall from 137.90, and the intraday bias remains on the downside. If there is sustained trading below the 61.8% retracement level of 127.20 to 137.90, which is at 131.28, it will pave the way for a retest of the 127.20 low. On the upside, if there is a break above the minor resistance level of 133.81, the intraday bias will turn neutral, and some consolidation may occur.
Looking at the bigger picture, the rebound from 127.20 is likely to have completed at 137.90 as a corrective move, with a strong break of the 55-day EMA. The downtrend that began from the 2022 high of 151.93 is still ongoing. If there is a break of the 127.20 level, it will resume this downtrend and target the 61.8% projection level of 151.93 to 127.20 from 137.90, which is at 122.61. This scenario will remain the favored case as long as the resistance level of 137.90 holds.
